Another funding option: Using “Giving Circle” Investment Groups to Fund Housing for the Homeless

30 06 2009

by: Ryan Chahl

This is an idea that looks for several different investors that want to be able to buy property but either don’t want to invest large amounts of money or can’t afford to buy the property on their own. With the housing prices currently low throughout Canada investors are beginning to realize the potential for long term profits. The basis of the idea is that the investors come together to make the down payment on a piece of property. Our organization then house homeless people in the property and using the allowance the homeless people get from the government we will be able to cover the cost of the investors mortgage.

This has several benefits to the investor:

  • They have to put less into the investment so they are not risking as much
  • Due to the lower amount needed it opens up the opportunity for people with lower incomes to own a portion of a property
  • It is a hard asset that will increase in value so they have a long term return on investment
  • There is less risk involved as we can guarantee their mortgage payments whereas if they rent it out themselves they may have times when it is vacant
  • If they are part of a company they can advertise the fact they are involved in helping reduce the problem of homelessness though a social innovation.

These benefits will be used to attract the investors. The fact that mortage rates are currently very low also makes this a viable solution.

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